More jobs on the way, central bank says

The Reserve Bank of Australia thinks the prospects for employment growth is better in 2017 and could ease downward pressure on wages.

Businesses will hire more workers this year, if the central bank is right.

The jobless rate ended last year at 5.8 per cent, and a number of surveys have pointed to job security as one of the major concerns facing Australians.

But the Reserve Bank of Australia has noted there has been that a recent modest pick-up in full-time employment, rather than part-time.

"Forward-looking indicators point to a pick-up in employment growth," it said in its quarterly monetary policy statement released on Friday.

The RBA is pinning its expectations on a mopping-up of spare capacity in the labour market, which has limited wage rises.

If so, the downward pressure on wages could "ease further" this year.


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Source: AAP



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